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Sunday, August 8, 2010

Distinguish joint account from partnership.

MERCANTILE LAW QUESTION 2000

SUGGESTED ANSWER:
The following are the distinctions between joint account and partnership:

(1) A partnership has a firm name while a joint account has none and is conducted in the name of the ostensible partner.

(2) While a partnership has juridical personality and may sue or be sued under its firm name, a joint account has no juridical personality and can sue or be sued only in the name of the ostensible partner.

(3) While a partnership has a common fund, a joint account has none.

(4) While in a partnership, all general partners have the right of management, in a joint account, the ostensible partner manages its business operations.

(5) While liquidations of a partnership may, by agreement, be entrusted to a partner or partners, in a joint account liquidation thereof can only be done by the ostensible partner.

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